NEM Insurance Plc, one of Nigeria’s non-life insurance providers, is projecting a decline in Profit After Tax (PAT) to N11.71 billion for the first quarter (Q1) of 2026, despite a significant increase in premium income, the Lagos-based insurer said in a disclosure on the Nigerian Exchange.
The insurer posted an actual net profit of N12.82 billion in the first three months of 2025, compared with N10.54 billion in the same period of last year, reflecting a strong year-on-year growth of 21.65 percent.
The 2026 PAT projection, which is 8.68 percent lower than the Q1 2025 actual, therefore signals management’s expectation of thinner profitability in the coming year.
Insurance revenue for Q1 ’26 is expected to hit N65.26 billion, while its Insurance Service Result is projected at N13.66 billion. Operating profit is forecast at N8.56million, with interest and similar income contributing another N4.59million, bringing profit before tax to an anticipated N13.2 billion
Insurance Service Expenses (claims and acquisition costs) are forecast to surge to N41.36 billion in Q1 2026, compared with N22.47 billion in Q1 2025, an increase of 84.04 percent. This is the main development expected to weigh heavily on overall profitability despite a massive 41.69 percent jump in top-line premium earnings.
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The projected decline in profit after tax for 2026 is positioned against the backdrop of NEM’s track record of significantly exceeding its own prior projection for Q1’25.
The insurer’s actual net income of N12.82 billion in Q1 2025 decisively shattered its own earlier forecast of N7.15 billion for that period, representing a 79.11 percent surge over earlier predictions.
Such an extraordinary variance was not accidental; it was driven by superior operational execution, as the actual Insurance Revenue of N46.06 billion for Q1 2025 exceeded the forecast (N40.65 billion), alongside effective management of core underwriting expenses.
This powerful track record of over-delivery raises investor expectations regarding management’s guidance and makes the current profit contraction forecast for Q1 2026 a critical point of analysis, forcing the question of whether the guidance is overly cautious or genuinely reflects a structural shift in costs.
The forecast for NEM Insurance Plc. for the period ending March 31, 2026, was approved by the Board of Directors on December 9, 2025.
NEM Insurance is generally viewed as being in a strong financial position, reinforcing its capacity to attract capital. Its current market capitalization positions it as one of the largest insurers on the Nigerian Exchange
NEM, focusing heavily on the motor and general business segments, continues to benefit from strong capital adequacy and prudent risk management.